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Class Accuses DirectBuy of Fraud

HARTFORD (CN) - A federal class action claims DirectBuy charges thousands of dollars for "membership fees" in a club that allegedly enables people to buy stuff "at 'direct' prices - that is, the manufacturers' or suppliers' actual price," but that DirectBuy takes millions of dollars in kickbacks from manufacturers and suppliers, rendering its promises fraudulent.

The class seeks restitution, disgorgement and treble damages from DirectBuy, United Consumers Club, and Direct Buy Holdings.

The class alleges that "DB Holdings engaged in a pattern of racketeering activity," including mail fraud, wire fraud, and/or bank fraud, and unjust enrichment.

Plaintiffs are represented by Jeffrey Nobel of West Hartford.

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